INTERCEPT, GOVERNMENT PURCHASES LINE: The intercept of the government purchases line indicates autonomous government purchases, government purchases that do not depend on the level of income or production. This can be thought of as government purchases that the government sector undertakes regardless of the state of the economy. Autonomous government purchases are affected by the government purchases determinants, which cause a change in the intercept and a shift of the government purchases line.

     See also | government purchases line | slope, government purchases line | consumption line | intercept, consumption line | intercept, investment line | intercept, net exports line | induced government purchases | autonomous government purchases | marginal propensity for government purchases | government purchases | government expenditures | government consumption expenditures and gross investment | Keynesian economics | macroeconomics | government sector | national income | gross domestic product | determinants | induced expenditures | autonomous expenditures | aggregate expenditures | aggregate expenditures line | derivation, consumption line | government purchases determinants | Keynesian model | Keynesian equilibrium | injections | injections-leakages model | aggregate demand | paradox of thrift | fiscal policy | multiplier |

INTERCEPT, GOVERNMENT PURCHASES LINE, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: May 2, 2024].

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A graphical depiction of the relation between aggregate expenditures by the four macroeconomic sectors (household, business, government, and foreign) and the level of aggregate income or production. The four-sector aggregate expenditures line combines consumption expenditures, investment expenditures, government purchases, and net exports. The slope of this aggregate expenditures line is based on the marginal propensity to consume, adjusted for marginal propensities of the other expenditures that are assumed to be induced when constructing the line. This is one of three aggregate expenditures lines based on the number of sectors included. The others are the two-sector aggregate expenditures line and the three-sector aggregate expenditures line.

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